Playboy All set for Expansion in China
Published By : 07 May 2015 | Published By : QYRESEARCH
On the Wednesday, Playboy announced that it has struck a licensing deal with a Chinese firm, named Handong United, to produce and distribute apparel and accessories branded by Playboy. The deal is expected to put Playboy merchandise in four hundred new locations all over China, taking the total number of outlets to three thousand five hundred.
Playboy, which is known for its flagship adult magazine and the iconic bunny logo, has struggled for years as the competition rose extensively from free, online porn. The founder of Playboy, Mr. Hugh Hefner took Playboy private in the year 2011, and the enterprise has since targeted on re-constructing the kingdom by licensing the brandname Playboy to generate revenue.
The president of global licensing at Playboy, Mr. Matt Nordby stated that they are enhancing their licensing portfolio with brand-enhancing, long-term, partners, and Handong United is one of the partners that can provide a superior and premium product quality.
No magazine of Playboy has been ever sold in China. But similar to so various other consumer firms, it is investing heavily in the efforts to tap into the rising middle class in China.
The CEO of Playboy, Mr. Scott Flanders said in a statement that China is one of their most imperative markets. To attain this leadership position without having a media entity ever in China is the evidence to the tremendous power of their brand.
The strategy is paying off. The previous year, nearly one-third of US$1.5 billion global retail sales of Playboy came from China. In the previous decade, the company has generated US$5 billion in retail sales in the China. Playboy is even attempting to go a level up in Asia by partnering with Lane Crawford, the department store chain and the luxury brands like Marc Jacobs.